Stocks bounce as AI optimism offsets Middle East anxiety

By Amanda Cooper

LONDON, June 2 (Reuters) - Global stocks rallied connected Tuesday, buoyed by caller AI optimism aft Anthropic moved towards a U.S. banal marketplace listing, portion lipid prices and enslaved yields fell connected renewed hopes of ‌a U.S.-Iran deal.

Brent crude futures dropped much than 1% to $94 a barrel, paring the erstwhile session's crisp gains, ‌after U.S. President Donald Trump said talks with Iran were ongoing.

His comments came contempt a study that Tehran had suspended indirect negotiations with Washington to extremity hostilities, ​keeping investors cautious astir efforts to extremity the three-month warfare and underlining the fragility of an ongoing ceasefire.

Europe's STOXX 600 was up astir 0.8% successful greeting trading, arsenic a beardown forecast from chipmaker STMicroelectronics lifted exertion stocks.

AI ENTHUSIASM

Anthropic said connected Monday it had confidentially filed for a U.S. archetypal nationalist offering, edging up of rival OpenAI successful a intimately watched contention to scope nationalist markets. Google genitor Alphabet ‌is besides seeking to rise $80 cardinal successful ⁠equity to money the enlargement of its AI infrastructure.

"This speaks to the immense sums progressive successful keeping gait successful the AI arms race. It represents a important displacement from a play of bumper ⁠free currency travel to going headdress successful manus to the markets to assistance money its expansion," Russ Mould, concern manager astatine AJ Bell, said.

On the macro front, the Institute for Supply Management connected Monday said U.S. manufacturing PMI roseate to 54.0 successful May from 52.7 the erstwhile ​month, ​beating expectations to deed a four-year high, apt driven by firms front-loading ​orders amid rising prices and proviso concerns linked ‌to the Iran war.

Futures connected the S&P 500 and Nasdaq 100 were down astir 0.1%, pointing to a somewhat weaker unfastened aft some indexes posted an eighth consecutive summation and caller grounds highs connected Monday.

"That marks the archetypal clip successful a twelvemonth the S&P has achieved 8 consecutive regular gains. And if you look astatine the moves connected a play basis, a affirmative summation this week would beryllium the S&P’s 10th consecutive advance, which is thing we haven’t seen since 1985," Deutsche Bank strategist Jim Reid ‌said.

In Taipei, Nvidia CEO Jensen Huang said the institution has capable proviso ​to enactment beardown maturation successful cardinal processing units (CPUs) and graphics processing units (GPUs), but ​acknowledged proviso constraints stay a concern.

South Korean equities were ​volatile, with the benchmark KOSPI swinging sharply little aft hitting a grounds precocious arsenic bellwethers similar Samsung ‌Electronics and SK Hynix seesawed.